...all this talk about "the failure of capitalism"* and the "need to reinvent capitalism", etc., etc. seems to me pure gibberish. One, it doesn't need to happen. And two, it isn't going to happen. We may get a little regulation here, a little limitation there, but I doubt very much we have a wholesale reinvention of the global economic system.
What we are seeing, in this financial crisis and the markets response to it, is capitalism in action. To me, the beauty of the capitalist system is that the laws of economics are allowed to operate somewhat freely (by the way, the laws of economics operate within all economic systems). Given that the system is predicated upon self-interest (not a great moral foundation I might add), it also needs reasonable safeguards and constraints to protect consumers, and ensure that bad apples and bad actions have consequences. But if you live beyond your means and you get swept up in the euphoria of the masses (and fail to assess risk appropriately), then there is an inevitable price to be paid. No system can stop you from making dumb decisions. But the capitalist system seems most reasonable from the perspective of economic efficiency and wealth creation. Issues of wealth distribution and equity are generally best dealt with through the political system.
*The discussion about capitalism is full of hyperbole and ridiculous assertions on both sides. Things such as, "if you believe in capitalism you believe the market is always right and should be given free reign," and "capitalism is morally bankrupt and the cause of all evil," etc. Such comments are ridiculous on their face, and should be treated with the contempt they deserve (by ignoring them).
No comments:
Post a Comment